Deutsche Telekom's Bundling Push and US Discount: Two Levers on One Valuation Gap
Published on 09/22/2026 at 03:30 | Editorial boerse-global.de
Deutsche Telekom is leaning on customer retention at home and portfolio optionality abroad as management works to narrow the persistent discount at which the group trades relative to its American subsidiary. The Bonn-based carrier's latest consumer play targets households that pay for a fixed-line connection but have so far skipped a television package: MagentaTV Smart, bundled with RTL+ Premium, comes at no extra charge for six months, after which subscribers pay EUR 11 per month. The package carries more than 160 HD channels alongside access to streaming services including Netflix, Disney+ and AppleTV+.
Accepting the offer commits customers to a 24-month contract extension, and depending on the internet combination chosen, a cashback of as much as EUR 150 is on the table. For the company, the promotion locks in recurring revenue in a fiercely competitive market. Deutsche Telekom is broadening its reach to travelers as well, with the T-Travel platform offering a global eSIM solution and data packages covering more than 200 destinations.
Buybacks Running Alongside the Bundle Offensive
Management is simultaneously mopping up its own stock. Under the repurchase program announced more than a month ago — a stretch during which the shares have shed 2.7 percent — the company has been acquiring its own equity. Such moves telegraph confidence in earnings power and can cushion downward pressure on the market. Financial analysts view the ongoing purchases as a supportive factor for future profit distribution.
The stock added 1.1 percent on Monday to EUR 27.40, though it remains down 1.4 percent since the start of the year. Analysts continue to take a favorable view of the DAX heavyweight's prospects. Revenue in the second quarter of 2026 reached EUR 29.93 billion, a gain of 4.40 percent, with operating earnings per share of EUR 0.51 over the same period. For the 2025 financial year, the company paid a dividend of EUR 1.000 per share. Market participants expect fresh momentum for the remainder of the year from third-quarter 2026 results, due for release on November 5, 2026.
Should investors sell immediately? Or is it worth buying Deutsche Telekom?
Höttges and the Conglomerate Discount
The strategic question hanging over the equity concerns how Deutsche Telekom closes the stubborn valuation gap to its US arm. Chief executive Tim Höttges faces a situation in which the group is traded on capital markets at a noticeable conglomerate discount. In floor trading, the T-share rose 1.4 percent on Tuesday to EUR 27.54.
The American subsidiary is expanding faster than the European core business. Even so, a full merger of the two units meets with reservations among European shareholders, while a complete spin-off is regarded in the market as unlikely. A pragmatic middle path under discussion would see the stake in T-Mobile US reduced in stages. The capital freed up could give the group financial room to pursue acquisitions in European markets and strengthen its earnings base on the home continent. Market participants are therefore watching operating developments across the Atlantic closely.
JPMorgan Trims Its T-Mobile Target
Ahead of the upcoming quarterly figures, JPMorgan analyst Sebastiano C. Petti cut his price target for T-Mobile US to USD 260 from USD 275, while keeping the rating at "Overweight." The US bank trimmed its growth forecast for service revenue from contract customers but continues to regard the subsidiary's valuation at current levels as attractive.
On the home front, the group is pressing ahead with investment in its domestic fixed-line network, capping a record month for German broadband build-out. Even with those operational advances in the core business, the shares remain a long way from their 52-week high of EUR 34.35. Whether the company can close that gap depends heavily on how convincingly management balances US growth against value-creating initiatives in Europe.
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